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CA Intermediate · Financial Management and Strategic Management · Strategy Implementation and Evaluation

Zenith Motors launched an electric two-wheeler strategy assuming that government subsidies would continue and battery costs would fall steadily. A manager now tracks subsidy policy announcements and battery price indices every quarter, and will revisit the strategy if these assumptions weaken. Later, a sudden fire incident involving a competitor's scooter prompts an immediate review of safety plans. Which pair of strategic controls correctly describes the two activities, in order?

The pair is premise control followed by special alert control. Regularly checking whether assumptions about subsidies and battery costs still hold is premise control, while an immediate strategy review prompted by a sudden unforeseen incident is special alert control. Surveillance and implementation control do not match these specific activities.

  1. APremise control, then special alert controlCorrect
  2. BImplementation control, then strategic surveillance
  3. CSpecial alert control, then premise control
  4. DStrategic surveillance, then implementation control

Explanation

Tracking whether planning assumptions such as subsidies and battery costs still hold is premise control. A rapid, unplanned reassessment triggered by a sudden unforeseen event such as a competitor's fire incident is special alert control. The reverse order mismatches the activities, and surveillance is broad general monitoring, while implementation control tracks execution milestones.

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